We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.
Technology

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

What is a Service Bureau?

Malcolm Tatum
By
Updated: May 17, 2024
Views: 13,963
Share

A service bureau is any type of company that offers business services to their clients, in exchange for some type of compensation. The term has often been used to describe any business that offers technical support services to companies of every size, as well as a kind of financial institution. In many cases, the support offered by service bureaus allows companies to outsource essential functions to the bureaus, thus decreasing the operating cost of the customer.

One common example of a service bureau is the local bank. Bank customers utilize the services offered through banks in order to manage their finances more effectively. In exchange for services like loans, investment accounts, and even checking account services, the institution charges fees based on the schedule provided to the customer.

Another common type of service bureau is computer and network systems support. Many smaller businesses prefer to outsource the care and maintenance of their internal network and the related equipment to a business that offers a wide range of technology-based services. In exchange for taking care of the system as well as any components such as desktop computers, and managing software installations, the bureau often charges a standard monthly fee. An additional schedule of fees may apply if the customer requires help with projects that are not covered in the terms of the monthly agreement.

Increasingly, businesses outsource tasks such as payroll processing and distribution to some type of service bureau. With this application, the bureau maintains information on each employee, including specifics regarding withholding and direct deposits. The data is used to prepare payrolls based on the schedule provided by the client. Most payroll services also forward funds withheld for taxes to the appropriate tax agencies, and manage the process of depositing net pay into each employee’s designated bank account. As with many other service bureau types, the payroll service charges a flat fee, usually for each payroll processed, a figure that is usually much lower than employing personnel to handle payroll tasks in house.

Along with the cost savings that can be realized by utilizing a service bureau, smaller companies also have the advantage of being able to project the image of being a much larger operation. This can be helpful when attempting to secure clients, as the model allows the business to easily provide the same level of support to its clients as a much larger company could manage. When coupled with the lower operational costs, using a service bureau for a number of day to day needs is a choice that makes sense for many different types of companies.

Share
WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Malcolm Tatum
By Malcolm Tatum
Malcolm Tatum, a former teleconferencing industry professional, followed his passion for trivia, research, and writing to become a full-time freelance writer. He has contributed articles to a variety of print and online publications, including WiseGeek, and his work has also been featured in poetry collections, devotional anthologies, and newspapers. When not writing, Malcolm enjoys collecting vinyl records, following minor league baseball, and cycling.

Editors' Picks

Discussion Comments
Malcolm Tatum
Malcolm Tatum
Malcolm Tatum, a former teleconferencing industry professional, followed his passion for trivia, research, and writing...
Learn more
Share
https://www.wisegeek.net/what-is-a-service-bureau.htm
Copy this link
WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.